India raises import tariff value on gold and silver

By  Paul Ploumis 17 Aug 2015  Last updated at  08:28:46 GMT

MUMBAI (Scrap Monster): The Indian Government today announced hike in import tariff value for gold and silver. The import tariff value of gold was increased by nearly 2.5%, in accordance with prices of precious metals in the international market. Meantime, tariff value on imported silver has been increased marginally by 0.2% for the second fortnight period of the current month.

The Central Board of Excise and Customs (CBEC) issued notification in this regard elevating the gold import tariff value to $363 per 10 grams. The import tariffs are being hiked from the existing $354 per 10 grams. Meanwhile the import tariff value of Silver has been increased slightly from $498 per kilogram to $499 per kilogram.

The government move to lower the import tariff value is in primarily on account of rebounding gold prices in the global and domestic markets. The strong cues from the market indicate that there is more upside left for gold prices.

Meanwhile, gold prices edged higher on London spot market session today, on the back of rising safe-haven demand amidst risks surrounding currency devaluation by Chinese authorities. Spot gold traded at $1,178.78 per Oz in morning trade in Europe. Meantime, a few brokerages and analysts have come out with reports that predict mildly elevated prices for gold in the near-term. HSBC foresses 10% surge in gold prices towards the end of the current year. Analyst at Phillip Capital too expects gold prices to remain calmly bullish going forward.

The gold in India edged higher by Rs 20 per 10 grams to Rs 26,220 per 10 grams on rising demand from retail buyers and jewellers top meet seasonal demand. Silver too witnessed marginal rise on increasing demand. The prices gained Rs 270 per kg to touch Rs 36,400 per kg.

Tariff value is the base price on which the customs duty on imported gold or silver is calculated and it further helps prevent under-invoicing.